Israel 'surprised' at Indian decision to ban its defence firm

JERUSALEM: Israel today expressed "surprise" at India's decision to ban one of its defence firms from participating in Indian tenders for the next ten years for its alleged involvement in the multi-crore ordnance factory scam .

"The Ministry of Defence is surprised to hear about this decision because the hearing and investigation against IMI ( Israeli Military Industries) is yet to be completed, and in light of the fact that IMI has some particularly good claims against the stance," a senior Israeli defence official told PTI.

His remarks came a day after it was announced in Delhi that six defence suppliers, including four from Israel, Germany, Russia and Singapore, had been blacklisted by the government for their alleged involvement in the multi-crore ordnance factory scam and debarred for further business dealings for 10 years.

Action has been taken by the Indian Defence Ministry against Singapore Technologies (ST) Kinetics Ltd, Israel Military Industries Ltd, Germany's Rheinmetall Air Defence and Corporation Defence of Russia. Two Indian firms, Delhi-based T S Kisan and Co Pvt Ltd and R K Machine Tools of Ludhiana, have also been brought under the scanner.

"The (Israeli) Ministry of Defence will hold further discussions and consultations, together with IMI, in response to this particular decision", the Israeli official said.

IMI, meanwhile, has said it has operated in India as per the laws of the country and will cooperate with New Delhi to resolve issues.

The Israeli defence company said that it had not received any official notification regarding the move and therefore could not respond.

"IMI operated and operates according to the law and will continue operating vis a vis the Indian government to resolve the matter," the company told Ha'aretz.